Deutsche Börse

Deutsche Börse AG

Type	Aktiengesellschaft
Traded as	FWB: DB1
Industry	Finance
Founded	1993
Headquarters	Frankfurt am Main, Germany
Key people	Reto Francioni (CEO and Chairman of the executive board), Manfred Gentz (Chairman of the supervisory board)
Services	Equity trading platforms, derivatives markets, clearing, market data
Revenue	€2.106 billion (2010)[1]
Operating income	€527.8 million (2010)[1]
Profit	€417.8 million (2010)[1]
Total assets	€148.85 billion (end 2010)[1]
Total equity	€3.410 billion (end 2010)[1]
Employees	3,300 (FTE, average 2010)[1]
Subsidiaries	Frankfurt Stock Exchange, Clearstream, Xetra, Eurex (joint venture with SIX Swiss Exchange)
Website	www.deutsche-boerse.com

Deutsche Börse AG (German pronunciation: [ˈdɔʏtʃə ˈbœʁzə]) is a marketplace organizer for the trading of shares and other securities. It also is a transaction services provider. It gives companies and investors access to global capital markets. It is a joint stock company and was founded in 1993. The headquarters are in Frankfurt, Germany. As of December 2010, the over 765 companies listed had a combined market capitalization of EUR 1.4 trillion.

Company

More than 3,200 employees service customers in Europe, the U.S. and Asia. Deutsche Börse has locations in Germany, Luxembourg, Switzerland, Czech Republic and Spain, as well as representative offices in Beijing, London, Paris, Chicago, New York, Hong Kong, and Dubai.

FWB Frankfurter Wertpapierbörse (Frankfurt Stock Exchange), is one of the world's largest trading centers for securities. With a share in turnover of around 90 percent, it is the largest of the German stock exchanges. Deutsche Börse AG operates the Frankfurt Stock Exchange.

Deutsche Börse is the owner of Clearstream, a clearing house based in Luxembourg, and Market News International (MNI), a global financial news agency.

Mergers and acquisitions

Since 2007 Deutsche Börse operates the joint venture Scoach with SIX Swiss Exchange to provide a European derivative trading platform.

In 2001, Deutsche Börse tried to merge with the London Stock Exchange, followed in 2006 by a takeover bid, both rejected by LSE. After CEO Werner Seifert was forced to resign by the main shareholders in 2005, Deutsche Börse changed plans and entered into advanced negotiations for a merger with Euronext which would have brought two of the biggest stock exchanges in Europe into one holding. The New York Stock Exchange beat out Deutsche Börse's final bid for Euronext in 2006. However, in 2011 Deutsche Börse took over the New York Stock Exchange when the two merged in a new company wherein Deutsche Börse shareholders have 60% ownership, and NYSE Euronext shareholders 40%.

NYSE Euronext merger

On 7 December 2008, Deutsche Boerse rebuffed rumors that it might join with NYSE Euronext to create the world's leading stock exchange.^[2] While the company claims that it pursued the matter, on December 8, 2008 it reported that talks with which began on November 25, 2008 were closed without any result due to differences in valuation of the company.^[3]

Deutsche Börse had also considered the acquisition again in 2009.^{[citation needed]}

On 9 February, 2011, reports suggested that NYSE Euronext and Deutsche Börse were in advanced talks^[4] about an all-stock merger. Deutsche Börse was in advanced talks to buy NYSE Euronext in a deal that would create the world's largest trading powerhouse. The shares of both companies were temporarily frozen on the news due to the risk of large price movements and clarifications of the deal. A successful deal would see the new company becoming the world's largest stock exchange operator with a market capitalisation of listed companies equal to US$15 Trillion, US$13.39 Trillion of which is part of the much larger NYSE Euronext, which is approximately 6 times the size of Deutsche Börse.

President and deputy CEO of NYSE Euronext Dominique Cerutti would become the new company's president and head of commercial and internal technology. Roland Bellegarde, also of NYSE Euronext, would become the head of European cash equities. The new company would potentially have 300 million euros (US$410 million) in cost savings. However, the merger would be subject to review in both the United States and European Union under concerns it could create a "de facto monopoly."^[5] NYSE Euronext shareholders approved the Deutsche Börse’s all-stock deal on July 7^[6], and Deutsche Börse shareholders had accepted the deal by July 15.^[7]

References

1. ^ ^{a b c d e f} "Annual Report 2010" (PDF). Deutsche Börse. http://deutsche-boerse.com/dbag/dispatch/en/binary/gdb_content_pool/imported_files/public_files/10_downloads/12_db_annual_reports/2010/10_complete_version/Annual_Report_2010.pdf. Retrieved 17 April 2011. 
2. ^ http://news.yahoo.com/s/ap/20081207/ap_on_bi_ge/eu_germany_deutsche_boerse_nyse;_ylt=AsauGZb2LtlsfwROcCUexTmyBhIF
3. ^ Simon Kennedy. "Discussions ended without agreement". http://www.marketwatch.com/news/story/deutsche-boerse-shares-gain-after/story.aspx?guid={CDC73632-1FA5-4CC7-90E4-2D55EBCECC06}&dist=msr_1. Retrieved 2008-12-09. 
4. ^ Bunge, Jacob (2011-02-10). "NYSE, Deutsche Börse Talk Tie-Up as Competition Intensifies". The Wall Street Journal. http://online.wsj.com/article/SB10001424052748704858404576134153000503870.html. 
5. ^ http://www.bloomberg.com/news/2011-02-09/nyse-deutsche-boerse-are-said-to-be-in-advanced-talks-to-merge-exchanges.html
6. ^ "NYSE-Deutsche Börse deal clears US hurdle". Financial Times. http://www.ft.com/cms/s/0/f9baab1e-a955-11e0-bcc2-00144feabdc0.html. Retrieved 24 July 2011. 
7. ^ "Deutsche Börse Wins 82% Backing for NYSE Deal". Wall Street Journal. http://online.wsj.com/article/SB10001424052702304521304576448133230979762.html. Retrieved 24 July 2011. 

External links

Companies portal

• Official website